**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 


                      UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL



TITLE:  REVENUE GENERATING ACTIVITIES                POLICY: V.A.1x  
                                                                
                                                                  
Overview

Revenue Generating Activities (RGA's) are defined as all operations
that produce income or recover costs by providing goods or services
to the University community or, in some cases, to the general
public.

RGA's include the Medical Center, Auxiliary Enterprises, and other
support service functions.

RGA's include, but are not limited to:

     Departments and activities that solicit the patronage of the
     general public.  These include the Medical Center, the
     Athletic Department, the University Theatres, and the
     University Press.

     Departments and activities that provide goods or services to
     the general public on a basis incidental to their major
     mission of serving University faculty, staff and students. 
     These include Dining Services Facilities, Newcomb Hall
     Bookstore, Parking and Transportation Services, and Athletics.

     Departments and activities that normally confine their
     provision of goods or services to the divisions of the
     University community, and coincidently to University faculty,
     staff and students.  These include Copy Centers, Machine
     Shops, Printing Services, the Physical Plant Department,
     and the Computing Centers.  In exceptional circumstances, 
     where they are not in competition with commercial enterprises,
     such departments and activities may provide goods or services
     to entities outside of the University community.


Sales of Services and Products by a Revenue Generating Activity

All sales of services or products by RGA's must have a direct
relationship to the goals and missions of the University.

RGA's must conform to all University policies and procedures.

No RGA shall be established at the University without prior
approval of the appropriate University officer.

                                                                  
Authority to Establish a Revenue Generating Activity (RGA)

With the exception of the Medical Center, no RGA may be established
without the prior approval of both the University Comptroller and
the appropriate Dean or Vice President.

No RGA may be established at the Medical Center without the prior
approval of the Medical Center Director of Finance.

A department or activity that desires to establish an RGA must
submit a written request to the appropriate University officer. 
This request should describe the relationship of the proposed RGA
to the programs and purposes of the department or activity and
contain a description of proposed accounting procedures.  This
request should be approved by the department or activity head and
the responsible dean or director.

See also Policy IV.E.1, "Credit and Collections."

See also Policy XV.G.3, "University Services and Activities."

Responsibility for the Management of a Revenue Generating Activity

The department or activity head is responsible for the sound
management of each RGA in his/her area.  This responsibility
includes the establishment and maintenance of adequate internal
controls. If a cashiering activity is incidental to an RGA, the
department or activity head is also responsible for adherence to
policies governing cashiering activities.

See also Policy I.A.1, "Internal Controls."

See also Policy IV.D.1, "Cashiering Activities."

                                                                 
Unrelated Trade or Business

A RGAs will not be conducted for the PURPOSE of carrying on a trade
or business.

A RGA could be considered a trade or business if any of the
following conditions apply:

     The RGA is regularly carried on, i.e., the activity is
     frequent and continual.

     The RGA (not the proceeds from it) does not contribute to the
     mission on the University.

     The RGA is conducted in competition with taxable
     organizations.

However, a RGA carried on for the convenience of students, faculty,
employees, patients, or visitors is not considered a trade or
business.

See also Procedure 15-70, "Approving New or Expanded Services and
Activities."

See also Policy XV.G.4, "Analysis of Unrelated Business Income."


ISSUED BY:                                                06/10/93 

University Comptroller         5.1.1.1